Teamsters Rail Conference Opposes Union Pacific-Norfolk Southern Merger, Citing Monopoly and Safety Fears

WASHINGTON – The Teamsters Rail Conference, representing nearly 20,000 workers across two major unions, has formally announced its strong opposition to the proposed merger of Union Pacific Railroad and Norfolk Southern Railway. The unions have called on the U.S. Surface Transportation Board (STB) to reject the proposal, arguing that the consolidation would create a less competitive and less safe rail network, while harming workers and customers.

The announcement came from the Brotherhood of Locomotive Engineers and Trainmen (BLET) and the Brotherhood of Maintenance of Way Employes (BMWE), the two unions that constitute the Teamsters Rail Conference. In a statement, the unions confirmed their decision was the result of a thorough internal investigation, extensive meetings with union members, and direct negotiations with Union Pacific’s leadership. The conclusion was unequivocal: a merged entity of this scale would not only be detrimental to its own workforce but would also diminish the railroad industry’s competitiveness against other transportation modes like trucking.

The unions’ formal opposition centers on fears that the merger would exacerbate what they term “unsafe” railroad practices, a significant concern amid ongoing national discussions about rail safety. They argue that consolidation of this magnitude historically leads to weaker service for shippers and significant job losses, a direct contradiction to promises made by the railroads. While UP has reportedly secured job-guarantee agreements with other unions, such as the International Association of Sheet Metal, Air, Rail & Transportation Workers–Transportation Division (SMART-TD), the Teamsters remain unconvinced that the merger’s long-term effects will be positive for labor.

This opposition from labor does not exist in a vacuum. The Teamsters’ position aligns with a growing chorus of dissent from powerful industry groups and lawmakers. The Rail Customer Coalition and the American Chemistry Council have both submitted letters to federal regulators expressing deep concerns that railroad mergers do not enhance competition. Instead, they point to a history of weaker service and higher costs post-consolidation. Proponents of the merger, however, argue that it will create significant efficiencies, citing the benefits of single-line hauls—where one railroad handles a shipment end-to-end—as a way to simplify logistics and speed up transit times for customers.

Key Takeaways

• Significant Labor Opposition: The Teamsters Rail Conference, a major labor bloc representing nearly 20,000 workers, has formally requested the STB to block the merger.
• Broad-Based Concerns: The unions’ fears of reduced competition, service degradation, and monopoly power are shared by major customer coalitions and legislators, creating a powerful multi-sector front against the deal.
• Regulatory Showdown: The Surface Transportation Board is now the central arbiter, tasked with weighing the railroads’ promises of efficiency against widespread concerns over the merger’s impact on the national supply chain.

Editor’s Analysis

The unified opposition from the Teamsters Rail Conference and major shipper groups presents a formidable obstacle for the Union Pacific-Norfolk Southern merger. This is not merely a labor dispute; it is a fundamental challenge to the logic of further consolidation among Class I railroads. For the Surface Transportation Board, which has adopted a more cautious approach to major rail mergers since the Conrail split in the late 1990s, this case will be a critical test of its modern regulatory philosophy. The alignment of powerful labor and customer interests creates a compelling narrative that the potential public harms of creating a transcontinental monopoly may far outweigh the private benefits of operational efficiency. How the STB rules will likely set a defining precedent for the structure of the North American rail industry for decades to come.

Frequently Asked Questions

Which unions are opposing the UP-NS merger?
The Brotherhood of Locomotive Engineers and Trainmen (BLET) and The Brotherhood of Maintenance of Way Employes (BMWE), which together form the Teamsters Rail Conference, are leading the opposition.

What are the main arguments against the merger?
The primary arguments include fears of creating a monopoly, which would lead to reduced competition, weaker service for customers, job losses for union members, and the expansion of unsafe operating practices.

Who will ultimately approve or deny the merger?
The U.S. Surface Transportation Board (STB), a federal regulatory agency, holds the ultimate authority to review, impose conditions on, approve, or deny the proposed railroad merger.